Should You Delay Social Security to Age 70? The Real Trade-Offs You Need to Know

One of the most common pieces of advice I hear is that you should always wait until age 70 to claim Social Security. And while delaying benefits can absolutely pay off for some people, it’s not the right move for everyone. Your timing decision can affect taxes, portfolio withdrawals, long-term income, and even your overall lifestyle in retirement. So instead of following blanket advice, you need to understand the trade-offs.

Delaying Social Security comes with one major advantage: delayed retirement credits. Every year you wait past your full retirement age, your benefit grows by 8%, up until age 70. By delaying, you lock in your maximum monthly payment for the rest of your life. That’s powerful, but it’s not the only factor you should consider.

The decision gets more complicated when you look at what happens during the waiting period. If you delay benefits, you may need to rely heavily on your investment portfolio to cover your living expenses. That means selling assets during market downturns, taking higher withdrawals, or reducing your lifestyle. Those choices can have long-term consequences that offset the value of a larger Social Security benefit.

Real-world examples help illustrate how different outcomes can be. Take Greg and Michelle, who decided to wait until age 70. Their plan worked beautifully. They kept their taxable income low, took strategic withdrawals, and shifted assets into Roth IRAs. As a result, they maximized their long-term Social Security income while positioning their investments for tax-efficient growth.

But then there’s Linda, who also waited until 70 only to discover the strategy worked against her. She spent nearly a decade drawing down her portfolio just to bridge the gap until Social Security kicked in. By the time she reached 70 and finally collected her higher benefit, her investment savings were so depleted that she felt financially insecure. Even with a bigger monthly check, her long-term stability suffered.

These case studies show that context matters. Several factors can make delaying a good or bad decision. If you’re in poor health or come from a family with shorter life expectancy, delaying may mean you never fully enjoy the benefit you worked for. If delaying Social Security forces you to withdraw heavily from your portfolio, you could shrink your future income. And if the market drops during those early retirement years, those withdrawals hurt even more.

Flexibility plays a big role too. Many people spend more during the early stages of retirement when they finally have the time, health, and energy to enjoy life traveling, hobbies, visiting family, or simply doing the things they put off for years. Collecting Social Security earlier can give you the immediate cash flow you need to enjoy that window instead of waiting for a larger check later.

This is why timing Social Security is not a “one-size-fits-all” rule. The right strategy has to fit your health, income, tax picture, investment plan, and retirement lifestyle. It requires running the numbers not relying on generic advice.

The bottom line is simple: delaying until 70 can be a fantastic strategy, but it’s not universal. Before making the decision, look closely at your cash flow, tax situation, portfolio strength, and long-term goals. When your Social Security strategy aligns with your broader financial plan, you get the best results, both today and in the decades ahead.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.